Case
EU and non-EU non-profit organizations organizing events (training, seminar, conference, annual congress or similar event) in Belgium have to deal with VAT.
Managing VAT obligations correctly can help your organization to optimize its revenues. (VAT cannot be a final cost for your organization). Otherwise, non-compliant organizer faces risks involving payment of VAT, possible penalties and late payment interests.
VAT in your relation with PCO
Non-profit organizations often focus on the scientific aspects of the event and entrust a P.C.O. (Professional Congress Organizer) with all the logistics work necessary for the organization of the event and its practical management (management of registrations, catering, invitation, meeting’s rooms, flights, accommodation, etc.).
P.C.O. can act under different scenarios: an intermediary (acting in the name and for the account of your organization), a commissionaire (acting in its own name but by order and for the account of your organization), an organizer (acting in its own name and for its own account), etc.
Your organization should pay attention to the VAT treatment of its relation with the P.C.O. The method consisting in solely matching revenues with expenses incurred for the organization of the event is absolutely not in line with the VAT rules. Whatever the financial commitments concluded between your organization and P.C.O. are, these operations have to be treated separately for the application of VAT. The automatic dismissal of VAT obligations of your organization by a P.C.O. is also not in line with proper regulations.
VAT in your relation with participants
Right of admission to events such as conference and seminar is subject to VAT in Belgium, the country where the event takes place (art. 53 and 54 of VAT Directive).Re-invoicing of catering services, hotel accommodation costs, guide-tour, etc. is also subject to local Belgian VAT (at different VAT rates). Your organization should therefore normally be VAT registered in Belgium and charge local VAT.
Your organization should pay attention to Belgian VAT rules : VAT registration process, mandatory mentions on invoices, filing periodical VAT return, books, registers and records, tax period and VAT returns, payment of VAT to local Treasury, VAT deregistration process, etc.
Pay attention to
Non-profit organizations (EU and non-EU) organizing events like training, seminar, conference or similar event in Belgium must pay attention on the following issues:
- Check whether or not their event falls into the scope of educational or scientific event (exempted from VAT) as determined by the Belgian rules ;
- If case the event cannot be VAT exempted, proceed to the local VAT registration;
- Check whether or not a local reverse charge can be applied on the registration fee invoices to local participants;
- Check the local VAT rate applicable on each element re-invoiced (registration fee, catering, etc.);
- Analyze carefully their relation with the sub-contractor in charge of all the logistic work necessary for the organization of the event;